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Shoal Bay got its name as a result of having numerous shoals in the bay. St. Simon's Anglican Church which presently stands was the former schoolhouse. On December 17, 1939 it was opened as a Schoolhouse Chapel by the Rev. R.S. Sheppard.
Shoal Bay was once the site of the Fogo Island Shipyard, built by the Fogo Island Co-op in 1968. Over 30 longliners were built there up until its closure in 1974.
Shoal Bay is also well known for its schools of herring and rich mussel beds.
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